'Personal Finance Essay\r'

'1. Are you calculateed a default on risk? How would a lender evaluate you ground on â€Å"the five C’s” of reference capital, collateral, and conditions? How could you plan to make yourself more dinky to a lender in the future? I do non believe I would be considered a Default Risk because I go for a favorable belief score and I try to pay off what I spend on my credit cards that same month or fairly quickly so I preceptor’t have to pay high lodge in esteems. Based on the five C’s… Character-I would be considered as a good function due to employment, residential, and re retribution history. Capacity- I try not to carry high balances on my credit cards, therefore, my debt duty is fairly commencement. Capital-Capital would be considered mediocre due to my summation and collateral base. Collateral- I would no have often condemnations collateral because most of my assets are in my spouses name. Conditions-I may be considered a risk und er conditions considering I work for the auto industry.\r\nTo make myself more attractive to a lender, I would probably use my credit cards more often and build up my credit history to make it stronger. I would in like manner make for my name to my spouses mortgage because he have the home in front he met me. I would as well increase my income by working full-time contrary to part-time that way I could show that I would be able to afford to have a higher balance on my credit card.\r\n2. tell apart the last two breaker points (consumer goods and durable goods) you acquired. Alternatively, select whatsoever two items you leveraged during the last two months. Choose versatile items and analyze each item interms of the following factors:\r\na. wherefore did you bargain for that item? How did you decide what to overreach out? I recently bought an Ipad and a new pair (good) of racecourse fit out. I bought the Ipad basically for a portable electronic reading device and som ething I bring with to concord up with my school work and it will as well as assist me with my job at work. I likewise decided to get a really good pair of running shoes for walking &type A; jogging. I usually purchase shoes that salute around $40-$50 but have never been happy with them.\r\nWhere did you get your information about the item?\r\nI did a lot of research online and I as well asked some of my peers who have these items their opinions and I overly read reviews.\r\nWhere did you go to bribe the item? I bought my Ipad at the Apple store and I bought my shoes online.\r\nIn what kind of market did you make your purchase? The market seems to be picking up so I would say it is a striving market.\r\nWhere did the cash come from for your purchase? I used m cardinaly that was given to me as a gift from my parents to buy the Ipad and the shoes came from money I earned at work.\r\nHow much did you pay for the item, and how did you pay for it? The Ipad was approximately $40 0.00 and the shoes were approximately $150.00\r\nh. How would you rate your satisfaction with your purchase? I am very happy with both of my purchases. I am glad I did the research before I bought them and sometimes it’s get around to get the more expensive item because I do believe you get what you pay for.\r\ni. If or when you purchase that type of item again, what might you do differently? The only thing I would do differently is be a little more diligent and wait for the items to go on sale or find a coupon to use.\r\n3. For a car you would like to drive, calculate and compare what it would cost you to buy it and to consume it. Use the Lease versus Buy calculator athttp://www.leaseguide.com/leasevsbuy.htm. What would be the advantages of owning the car? What would be the advantages of leasing it? For your lifestyle, needs, and uses of a vehicle, should you buy or lease?\r\n2014 Ford Explorer to lease it for 24 month, 12,000 miles per year with an A-Plan discount and $2500 vote down remuneration the payment would be $335 per month. To Purchase the vehicle on a 60 month loan with $2500 down would be $589 per month.\r\nThe advantages of buying a vehicle is that it is a major investment, better finance rates, you do not have reside about miles, you can cheat on it to recover some equity or raft it in to purchase something new, you can keep it as long as you would like. It is your vehicle once it is paying(a) off.\r\nThe advantages of leasing a vehicle would be a low monthly payment, no down payment, getting a new car more often, fewer maintenances concerns, not having to worry about selling the vehicle, and GAP reportage is usually included if the vehicle is totaled.\r\nIn our family we do both we have one vehicle we purchased and one we lease. I do not drive a lot of miles and I work at a dealership so I like to get a new vehicle every 2 years. I also like not having to worry about the vehicle breaking down etc… We also own a vehicle so we do not have to worry about departure over mileage if we take road trips, we have something that is ours to use as equity and we have a very good interest rate.\r\n4. You are considering purchase an existing single-family house for $200,000 with a 20 pct down payment and a thirty-year fixed-rate mortgage at 5.5 percent. a. What would be your monthly mortgage payment? The payment would be $908.46 per month. b. If you decided to buy two points for a rate of 5 percent, how much would you save in monthly payments? Would it be worth it to buy the points? Why, or why not? The payment would be $888.75 and yes it would be worth it because you are saving $22.71 per month and that would add up over a 30-year period to $8175.60.\r\nc. When should you consider an adjustable-rate mortgage? If you are only planning on having a mortgage for a short time it would be wise to consider an adjustable-rate mortgage because the rate stays the same for 5 years hence it could change afterwards eith er or the better or the rates could go up significantly.\r\n'